Senate Health and Welfare reviews bill letting Green Mountain Care Board cut hospital rates, appoint observer

The Senate Health and Welfare Committee on April 30 discussed H.482, which would allow the Green Mountain Care Board to order reductions in commercial reimbursement rates to one or more Vermont hospitals when a domestic health insurer triggers a regulatory action-level capital event and to appoint an independent hospital observer to monitor compliance.

The bill, described to the committee by Jen Harvey of the Office of Legislative Counsel, would let the board order rate reductions after consultation with the commissioner of financial regulation if an insurer “faces an acute and immediate threat to its solvency.” Harvey told the committee, “H.482 is an act relating to Green Mountain Care Board authority to adjust a hospital's reimbursement rates and to appoint a hospital observer.”

Why it matters: proponents say the measure is a backstop to protect insurer solvency; opponents and some senators warned it could surprise hospitals and emphasized that any exercise of the authority should preserve fair process. Committee members repeatedly asked for written responses and additional…